Earnings Reports for July 17
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Bank of America in Line With Estimates
Bank of America Corp. met Wall Street’sexpectations with second-quarter earnings of $1.23 pershare, up 7 percent over its operating earnings of $1.15 per sharea year ago.
With more than 4,500 branches in 21 states, Bank of Americaserves more than 30 million households and 2 million businesses.
Net income for the nation’s second-largest bank was $2.06billion, essentially unchanged from operating earnings a yearearlier. Net income in the same quarter last year was $1.92billion, or $1.07 per share, including a $145 million after-taxmerger-related charge.
Consumer and Commercial Banking, which serves individuals andbusinesses with annual sales of up to $500 million, earned $1.25billion and had a return on equity of 21 percent. This segmentrepresented 61 percent of the company’s net income.
Those gains were offset by slower capital markets activity anddepreciation in venture capital investments due to lower stockprices.
The return on common equity in the latest quarter was 17.63percent, basically unchanged from a year earlier, and the return onassets was 1.23 percent.
Mutual fund assets rose by $12 billion, or 14 percent, duringthe first six months of the year. In addition, the company agreedto acquire the remaining 50 percent of Marsico Capital ManagementLLC, an investment management firm which manages more than $15billion in assets.
Card revenue rose 13 percent and consumer investment andbrokerage revenue grew 16 percent. Trading revenue was up 19percent and corporate banking service revenue rose 9 percent.
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Corning Sees Earnings Soar
Corning Inc. reported second-quarter earnings were up 80 percent from a yearearlier, surpassing Wall Street expectations.
The company said growth was driven by strongsales of fiber optical cable and flat-panel display glass.
The company said second-quarter pro forma earnings reached$271.1 million, or 94 cents a share, compared with $136.5million, or 52 cents per share, in the same quarter of 1999.
Wall Street had expected Corning to earn 80 cents a share,according to research firm First Call/Thomson Financial.
The pro forma net income excludes amortization of purchasedintangibles and goodwill, in-process research and development,one-time acquisition costs, discontinued operations and othernonrecurring items.
The company boosted its outlook for full-year pro formaearnings to between $3.15 and $3.25 a share, about 60 percentabove the year-earlier $2 a share. Analysts have forecastearnings of $2.92 a share.
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